KeyBanc Capital Markets has recently reduced Nordstrom Inc (JWN) stock to Sector Weight rating, as announced on September 26, 2024, according to Finviz. Earlier, on September 5, 2024, Barclays had raised the stock from a Underweight to Equal Weight, setting a price target of $23 for JWN stock. Telsey Advisory Group also reiterated Market Perform rating with a price target of $24. Additionally, Telsey Advisory Group reiterated Market Perform rating on July 9, 2024, with a target price of $23. Jefferies analysts, in their report published on March 7, 2024, also reduced Hold rating and set a price target of $17 for Nordstrom Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Nordstrom Inc (JWN) Stock Trading Recap
On Tuesday, Nordstrom Inc (JWN) stock saw a decline, ending the day at $23.13 which represents a decrease of $-0.86 or -3.58% from the prior close of $23.99. The stock opened at $23.97 and touched a low of $23.07 during the day, reaching a high of $24. The volume of shares traded was 1.71 million falling short of the average volume of 2.35 million.
JWN Stock Performance and Moving Averages
In recent trading, Nordstrom Inc (JWN) stock price has shown some volatility, fluctuating -3.95% over the last five trades and 0.57% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 17.29%, and it has gained 9.62% in the previous three months. Currently, JWN is trading at 1.86%, 3.01%, and 11.29% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, JWN, a Consumer Cyclical sector stock, is trading -7.22% below its 52-week high but remains 79.58% above its 52-week low. The Average True Range (ATR) (14 days) of 0.69 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Nordstrom Inc’s Profitability and Valuation Ratios
Nordstrom Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 3.62% and a profit margin of 1.90%, with a gross margin of 17.29%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Nordstrom Inc’s market capitalization stands at $3.80 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 13.55, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 11.71. Additionally, the Price-to-Sales Ratio is 0.25, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 4.01, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 42.47% of Nordstrom Inc (JWN)’s shares, while financial institutions hold 52.85%.
Notable insider trades include DePree Alexis, Chief Operating Officer at Nordstrom Inc (JWN), who sold 20000 shares on Sep 24 ’24, at $23.2 each, totaling $0.46 million.
